Hertz Drops Executive Pay Plan That Judge Called Offensive
- Bankrupt company will seek bonuses for lower-ranked managers
- New proposal reduces maximum payout to vice presidents
Signage outside a Hertz office in San Francisco.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Hertz Global Holdings Inc. dropped its plan to hand out as much as $5.4 million in executive incentive bonuses this year after the judge overseeing the company’s bankruptcy called the idea “offensive.”
Instead Hertz will push forward with an $8.2 million bonus program for less-senior managers, designed to motivate them while the company reorganizes in bankruptcy, the car renter said in a court filing Wednesday. Hertz may try again to give the executives a bonus next year, the company said.